Holy Rosary College of Sta. Rosa Laguna, Inc.

Tagapo, City of Santa Rosa, Laguna

HIGH SCHOOL DEPARTMENT

School Year 2021-2022

ENTREPRENEURSHIP
12-ABM/HUMSS/STEM
LEARNING MODULE

1st Semester- Second Quarter

Arman Joseph T. Manlalangit

Aj.manlalangit@[email protected]

HRC ENTREPRENEURSHIP, Grade 12-ABM/HUMSS/STEM, 1st Semester- 2nd Quarter

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 OVERVIEW
Entrepreneurship is perceived to be the symbol of business innovation, determination, perseverance, and
achievement. The Philippines is basically an entrepreneurial country where the big bulk of the businesses are micro,
small, and medium enterprises. As a developing country, entrepreneurship has contributed significantly to our
national economic growth and in the development of our society at large. The promotion of entrepreneurship through
secondary education is another laudable strategic action that will introduce and encourage the youth to engage in
various types of livelihood as a source of decent work for themselves, for their family and for the welfare of society.

In Lesson 4, Marketing discusses the 7Ps of marketing, market research, basics of branding, marketing
management practices, and business plan preparation.
In Lesson 5, Operations and Human Resource Management discusses production/operations management
and human resource management principles.
In Lesson 6, Financial Accounting and Management covers the concept of bookkeeping, interpreting
financial statements, preparing a business report, and sound financial management practices.
.

LESSON 4-MARKETING
Lesson Duration: 4 HOURS

Lesson Description
The critical phase in the entrepreneurial process is actualizing the entrepreneurial mindset after opportunity
recognition, when the business idea is put into a final form where the details are worked out and it is transformed
into something of value such as a new product or service.
.
Learning Objectives:
At the end of the lesson, the students should be able to:
• Discuss the 7Ps in marketing;
• Explain the importance and process of market research;
• Describe a brand name; and
• Discuss marketing management practices that can be adopted.

Module 1: 7Ps Of Marketing ________

In this module, you will encounter the following:
Day 1-online class
Pre-Test: Pre-Assessment 1
Discussion: 7Ps of Marketing
Day 2 - asynchronous
Activity: Seatwork: TRUE or False
Day 3 - online class
Discussion: 7Ps of Marketing
Day 4 - asynchronous
Activity:
MARKETING- is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.

THE 7Ps of MARKETING

1. Product
➢ In the manufacturing industry the production and consumption of the product are not simultaneous
and it is tangible, not always diverse nor usually perishable.
➢ It is an object or system made available for consumer use; it is anything that can be offered to a market
to satisfy the desire or need of a customer.

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 2. Pricing
➢ With a product, the materials that go with it can be measured and its tangible cost of production is
also measurable therefore, it is not that difficult to put a price tag on it.
➢ It is the process whereby a business sets the price at which it will sell its products and services, and
may be part of the business's marketing plan.
3. Place
➢ The product is not necessarily produced and consumed in the same place. The place of production or the
plant site can be different from the place of distribution or selling.
➢ It is the element of the marketing mix that ensures that the product is distributed and made conveniently
available for the consumer
4. Promotion
➢ It fulfills the same role as it does in any other marketing context. A service may be more easily
replicated than a physical product.
➢ Refers to any type of marketing communication used to inform or persuade target audiences of the
relative merits of a product, service, brand or issue. It helps marketers to create a distinctive place in
customers' mind.
5. People
➢ In the production of a product, the people needed to do the tasks are not directly dealing with the
customers so that customer service training is not a priority but production related training is.
➢ It refers to individuals and groups directly related to the business such as those who produce the goods,
those who provide services, and those who manage daily operations
6. Process
➢ Production of a product can be standardized, customized /personalized, or both. The processes of
production can involve steps/processes that require precision and standard measures of inputs to produce
the desired quality and quantity of the product.
➢ It involves the set of activities that facilitate the delivery of the product to the customer.
7. Physical Evidence
➢ With a product, the location of the manufacturing site of plant site is dependent on the availability
and accessibility of materials, manpower, machineries, nature of the product, and the target market.
➢ It refers to the physical elements that are part of or result from providing the products.

Module 2: Market Research ________

In this module, you will encounter the following:
Day 5-online class
Pre-Test: Pre-Assessment 2
Discussion: Market Research
Day 6 - asynchronous
Activity
Day 7 - online class
Discussion: Market Research
Day 8 - asynchronous
Activity:

MARKET RESEARCH- is an organized effort to gather information about target markets and customers: know
about them, starting with who they are. It is a very important component of business strategy and a major factor in
maintaining competitiveness.

1. Identify potential customers

Who is going to use your product/service? How old are they? Are they male or female? Are they married, single
or divorced? Do they have children? Where do they live? What is their level of education?
2. Understand existing customers
Why do customers choose your product over competitors? What do they value? Is it service, product quality or
the prestige associated with consuming your product/service? Who influences their buying decision? What
magazines do they read? What websites do they visit? What do they enjoy doing?
3. Set realistic targets
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 From the information you collect you will be able to set realistic targets for areas such as growth, sales and the
introduction of new products/services.
4. Develop effective strategies
From your research you will be able to make informed marketing decisions about how to price your
product/service, how to distribute your product/service, which media channels to use (e.g. newspaper, radio or direct
marketing) or whether to develop a new product/service. It will also help you make an informed decision about
starting, building, consolidating, diversifying or reducing business activity.
5. Examine and solve business problems
If you have identified a business problem, research will help you work out what is happening. For example, if
your sales have fallen you might discover that brand awareness has also fallen, or that a new competitor has entered
the market or a substitute product has become available.
6. Prepare for business expansion
Research will help you identify areas for expansion and test the market’s readiness for a new product/service. For
example you could be looking to open a new retail store and you need to find the right location or you could plan to
make changes to your distribution channels (e.g.: from home parties to retail) and need to determine how that will
affect your customer base.
7. Identify business opportunities
Your research could identify new business opportunities. You may find an un-serviced or under-serviced market.
You could identify changing market trends such as population shifts, increasing levels of education or leisure time
which bring new opportunities.

A. Primary research is information gathered directly from the respondents who answered set of questions.
This information is usually collected through surveys, observation, focused group discussion, or
experimentation.
• Keep it as short and simple as possible
• Make sure it is visually appealing and easy to read.
• Cluster or block related questions.
• Move from general questions to more specific questions.
• Move from easy to answer questions to more difficult to answer questions.
• Make sure questions are brief and easily understood.
• Avoid leading questions, questions with ambiguous words, questions that are too difficult to answer.
• Make sure any response scales used are logical with categories that are mutually exclusive.
• Always pre-test the questionnaire to establish it reliability and validity as well as identify potential
problems like length of answering and the use of language for understanding.
Focus group discussions (FGDs) are now gaining wider usage in market research due to substantial information
gathered given a time limit. It can be moderated group interviews and brainstorming sessions that provide
information on users' needs and behaviors. As explained in the Guide to Market Research and Analysis (2015),
FGDs can be useful for the following types of discussions
• Exploratory - Obtain information on general attitudes, understand the Circumstances under which
customers might require your product or service, understand their desired outcomes.
• Feature prioritization - If trade-offs have to be made among various customer needs, focus groups can be
helpful in prioritizing them.
• Comparative analysis - Understand where else customers go to get similar information, services or products
and what attracts them to those sources.
• Trend explanation If you notice a trend in the way that customers use your website (for example, they
always use the search function rather than navigating through the structured product list), then focus groups
can be used to better understand why this is happening.

Furthermore, the Canada Business Network ("Guide to market research and analysis," 2015), also discussed the
following considerations in the use of FGDs in market research:

• Limit the length of the session to between 90 and 120 minutes.

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 • Generally, conduct focus groups with 8 to 10 participants per group (recruit 10 to 12 participants to ensure
that 8 to 10 show up).
• Use a knowledgeable moderator/facilitator who can manage group dynamics, probe skillfully to obtain
deeper understanding of issues and capture a broad spectrum of opinions.
• Use a semi-structured or open-format discussion.
• Strive for uniformity in the group's composition. For example, it may not be advisable to have business
customers and retail customers in the same focus group, if their needs are very different.
• If you feel that group influence is likely to be n Strong factor (participants will be influenced greatly by
what others are saying), then personal interviews or smaller groups may be an option to consider than EGD.
Personal interviews are traditional method of data collection which ig nor done on a face-to-face manner with the
respondents. They can either semi-structured discussions with individual or open-ended questions where the
interviewer can probe further to understand underlying perceptions and behaviors of customers or other types of
respondents. As discussed in the Guide to Market Research and Analysis (2015), personal interviews are a more
alternative to FGDS and are generally used in the following situations:
• The topic is too personal or sensitive to be discussed in a group. or confidentiality of the participant is
required.
• A person's opinion may easily be influenced by others in the group. It is as important to learn as much
about what people don't know about a subject, as what they do know. In a group setting, knowledgeable
participants may inhibit less knowledgeable ones from participating.
• Logistic problems may make groups impractical. For example, if participants are geographically dispersed,
travel time and costs may be prohibitive.
• The interview respondents are executives from competing firms who would be reluctant to open up in a
group situation.
• The interview respondents are busy and it is difficult to schedule group sessions, or it is important to visit
interview respondents individually at their convenience.
Furthermore, the Canada Business Network ("Guide to market research and analysis," 2015), also described the
following considerations in the use of personal interviews in market research:
• It can be helpful to use a list of mostly open-ended questions to be asked in person or by telephone.
• An in-depth interview gives participants the opportunity to express their views.
• Interviews typically last from 15 to 40 minutes, but they can last longer, depending on the participant's
interest in the topic.
• This technique allows the interviewer to get detailed descriptions of individual experiences.

B. Secondary research gather data from existing available resources like company records, data bases, research
reports published in the media, internet search engines, libraries, and books which answer the question at
hand.
Module 3: Branding ________
In this module, you will encounter the following:
Day9 -online class
Pre-Test: Pre-Assessment 3
Discussion: Branding
Day 10 - asynchronous
Activity
Day 11 - online class
Discussion: Branding
Day 12 - asynchronous
Activity:

BRANDING- is a marketing practice in which a company creates a name, symbol or design that is easily identifiable
as belonging to the company. This helps to identify a product and distinguish it from other products and services.

When people use your brand name as a verb, that is remarkable. (Meg Whitman)
Brand Logos are graphic marks or symbols commonly used by commercial enterprises, organization and even
individuals to aid and promote instant public recognition.
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 CHARACTERISTIC OF A GOOD BRAND NAME
Short and simple Suggestive products benefits
Easy to spell and read Adaptable to packaging/labelling needs
Easy to recognize and remember No undesirable imagery
Easy to pronounce Always timely (does not go out of date
Can be pronounced in only one way Adaptable to any advertising medium
Can be pronounced in all languages (for Legally available for use ( not in use by
international markets) another firm

Module 4: Marketing Management ________

In this module, you will encounter the following:
Day 13-online class
Pre-Test: Pre-Assessment 4
Discussion: Marketing Management
Day 14 - asynchronous
Activity
Day 15 - online class
Discussion: Marketing Management
Day 16- asynchronous
Quiz Day
MARKETING MANAGEMENT- is the organizational discipline which focuses on the practical application of
marketing orientation, techniques and methods inside enterprises and organizations and on the management of a
firm's marketing resources and activities.
MARKETING MANAGEMENT PRACTICES
Marketing Involves getting the message out to customer about your product or service.
1. Estimate potential market demand. Estimation is an educated guess. The best way to be very certain and
confident about estimates for potential market demand is to look for facts about the industry where the
entrepreneur intends to enter. Census data is a good source of estimates to be able to project sales.
2. Analyze the competitors. It is first knowing what the competitor’s marketing is and then, understanding why
the target market is buying or will buy from the competitor. Knowing what the competitor is marketing includes:
the competitor’s products or services, how much they cost, how they are distributed, and how they are made known
to the target market. The best way to do this is to go out there and see the competition yourself. Some
entrepreneurs even go to the extent of buying the products or using the services of competitors. In this way, they
are able to assess and differentiate their own and the competitor’s product or service, determine the marketing
needed, be ahead of the competition, and ride with the market trends.
3. Price the product/service reasonably. A product can have great features and benefits, but the price of the
product can have a greater influence on how it will sell in the marketplace. Some people will pay a higher price for
a particular product if it is of better quality and will perform better and last longer. For others, if the price of your
product or service is higher than what the customers can afford or are willing to pay, chances are they will not
patronize your business. Set your price, after considering all costs, at an affordable amount for your target market.
4. Adopt a good product name for branding. Will my product’s name be remembered? When a name is different
or unusual, it may attract attention, and perhaps arouse curiosity. Is it something that is interesting, such as one that
is part of a rhyme or evokes humor? A good example is Jollibee. Consider a name that creates a mental picture of
image. Example: Red Ribbon provides an image that is easy to remember. Is it distinct enough from other names,
to prevent people from confusing your product with another? If the name i s meaningful and fits with the
product, it t ends to generate higher recognition and recall.
5. Put price tags. All goods which are being sold must have a price tag. A price tag is a label to the price of an
item being sold in a store. It is the amount of money a buyer pays in order to own the item. Placing a price tag on
goods being sold have the following advantages: (1) The price of an item is readily available to a buyer; (2) It
eliminates inconveniences on both the seller and the buyer as to the process of inquiry regarding the prices of
goods being sold; (3) A buyer can save time in choosing goods because he can easily pick out goods he can afford;
and (4) The government can easily monitor stores which are selling goods at a higher price than the prices
specified by the Price Control Council.
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6. Promote the products/services in various ways to increase sales. Products or services of the firm need to be
advertised in order to generate sales. The entrepreneur has to devise ways of making people know and want to
buy their products. This phase of the business falls under sales promotion. Sales promotion may be accomplished
through any of the following ways:

• Newspapers, radio and other forms of media. Putting up advertisements in the newspapers and
commercials on television and radio regarding a certain product
• Window displays. Putting up attractive window displays in front of a department store or supermarket.
• Fashion shows. The latest finds in men’s and women’s wear may be advertised by hiring professional models
to model the clothes.
• Exhibits. Goods may be put on display by exhibiting it in the lobby of a hotel or in a shopping mall.
• Lecture and demonstration. Products may be advertised by inviting prospective customers to attend a
lecture about the product. Demonstration is the process of showing to others how a certain product works or
is used.
• Product sampling. New products such as cosmetics, food items or beverages may be advertised by giving
prospective customers free samples to taste, drink or use.
• Quantity discounts. To attract buyers to buy a certain product, the store owner may announce a big discount
on such products.
• House-to-house selling. This method is bringing the product directly at the doorstep of potential buyers.
• Telephone. Calling up people by telephone and telling them about a new product is one way of directly
reaching the consumer.
• E-mail. Sending flyers or brochures via email to customers is a very convenient way to promote your
business.
• •Website. Put up your business website where products or services are uploaded for customers to know about.
• Social network. Advertise your product or service in social networks like Facebook and Multiply.
• Sales events. Stores announce the celebration of certain events, such as anniversaries, year-end inventory,
opening and closing sale, pre-post holiday sales and other events, to attract buyers to go into the store and
buy their goods.
• Poster. A poster is a listing of prices of various goods found in a shelf or a corner for the information of the
customers. It may also show some special information about new products/services. It is a way of attracting
customers to read about and consider buying a new product.
7. Attend to the complaints of customers. Among the practices being resorted to by business establishments
are the following: (1) Supermarkets and department stores have a customer service counter which attend to
the needs and complaints of customers; (2) Customers are given a certain number of days within which they
can return a product for replacement or refund; (3) Goods being sold have an expiration date to prevent the
sale of expired or stale products; and (4) In restaurants, waiters repeat the orders of customers to insure that
they have taken the right orders.
8. Issue official receipts to customers. All business establishments are required to issue official receipts.
However, there are some which do not issue receipts unless the customers ask for it. Others do not issue
receipts at all. Failure by a business establishment to issue a receipt means a financial loss to the government
in terms of payment of taxes. The official receipt is one of the ways by which the government determines how
much sales have been made by a business establishment and how much taxes need to be paid. This is also an
ethical management practice that shows the honesty of the entrepreneur.
9. Practice courtesy and efficiency in serving customers. When customers experience courteous and efficient
service in a business establishment, most likely, they will patronize again the business and even recommend
it to others. Treating customers in a courteous manner means greeting them upon entering the store and
thanking them upon leaving, promptly attending to their orders, informing customers as to the length of time
an order can be finished, requesting people to sit down while waiting for their orders, answering all queries
from the customers, and delivering the service or product on the date and/or time promised to the customer.

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 10. Pack the goods bought by customers properly. The service to a customer does not end when the customer
pays for his goods. Loading goods inside the paper bag should be done properly. Breakable items must be
packed in such a way that they will not be damaged or broken. Wet items need to be grouped together and
placed in a separate bag from the dry items. Items that are toxic such as detergents, insect spray, muriatic acid
and other poisonous household cleaning agents must be separated from food items. Recyclable plastic bags
should be lined with a carton at the bottom to make them sturdier. Remember to use environment-friendly
packing and wrapping materials in the company.
11. Observe the rights of consumers. The government realizes that consumers need protection from
manufacturers who produce poor quality goods and from service providers who provide inefficient service. It
has passed several laws protecting the following rights of consumers which the entrepreneur should comply
with:
1.RIGHT TO SAFETY
➢ Consumers have the right to be safe against goods that are harmful to one’s health and life
CONSUMER RELATED LAWS
Article 2187, Republic Act No. 386- Manufacturers and processors of foodstuffs, drinks, toilet articles and similar
goods shall be liable for death or injuries caused by any noxious or harmful substances used, although no contractual
relation exists between them and the consumers.
Article 10, Republic Act No. 7394 Consumer Act of the Philippines- Products found unsafe and dangerous are
not to be sold nor distributed to the public.
2. RIGHT TO INFORMATION
➢ Consumers have the right to be protected from misleading information and fraud
CONSUMER RELATED LAWS
Republic Act 3740- Act To Penalize Fraudulent Advertising, Mislabeling Or Misbranding Of Any Product, Stock
Bond, Etc.
Republic Act No. 306- The manufacturer is accountable for all information it gives out regarding a particular
product.
Article 10, Republic Act 7394- Advertisements which misinform the public are not allowed
Article 38, Republic Act 7394- This act provides a listing of foods, cosmetics, drugs and others which are unsafe to
the consumers.
3. RIGHT TO CHOOSE
➢ Consumers have the right to choose among a variety of products. In case of a monopoly , the government
needs to monitor such manufacturer to safeguard the welfare of the public
4. RIGHT TO BE HEARD
➢ Consumer have the right to complain to the proper authorities regarding any dissatisfaction from the use of a
product or service
CONSUMER RELATED LAWS
Article 159 Republic Act No. 7394- Complaints from consumers should be entertained
5. RIGHT TO COMPENSATION FOR DAMAGES
➢ Consumers have the right to claim for compensation for any harm done as a result of the use of a particular
product.
CONSUMER RELATED LAWS
Article 1547, Republic Act No. 386- The seller should provide a guarantee attesting to the safety of the product and
must be responsible for whatever harm may be inflicted on the consumer
Module 5: Business Plan ________
In this module, you will encounter the following:
Day 17-online class
Pre-Test: Pre-Assessment 5
Discussion: Business Plan
Day 18 - asynchronous
Activity
Day 19 - online class
Discussion: Business Plan
Day 20- asynchronous
Quiz Day

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BUSINESS PLAN- is a formal written document containing business goals, the methods on how these goals can
be attained, and the time frame within which these goals need to be achieved.

THE BUSINESS PLAN

The business plan is a blueprint of the business that the entrepreneur would like to start. It aims to establish if a
business idea will bring in a fair return to one's investment, will be beneficial to the society, and will bring no harm
to the environment when it is operated. There are many business ideas that may look attractive to the entrepreneur at
first, but not necessarily "doable." The goals of a business plan are to assess the feasibility of the business idea,
develop business strategies to make the business idea doable, and to use it for obtaining resources, especially loans
from financial institutions like banks. According to the Department of Trade and Industry, through the Bureau of
Small and Medium Enterprise Development (BSMED), the following are the reasons why an entrepreneur still needs
to make a business plan, no matter how good the business idea seems to be:
1. Reduce, if not remove, the risk of losing money invested in a poorly researched or unstudied business idea.
The entrepreneur should find out where one's money is going before letting go of it.
2. Avoid costly mistakes. Every sudden or careless decision the entrepreneur makes for the business entails
costs that one might not be able to recover.
3. Anticipate the financial requirements. It is always wise to foresee sudden increases or decreases in the
demand for the product or service so that the entrepreneur can plan for the lean months and ensure that the
business will have enough resources to meet business obligations during the periods when sales are low.
4. Organize the activities beforehand. As a road map on unfamiliar territory, it allows the entrepreneur to
estimate how the business will perform in the future and to prepare for contingencies in case things will not
turn out as planned
5. Assess actual performance against set goals. It enables the entrepreneur to set targets in terms of sales
volume and revenues. as well as expenses, among others. Once the business is put up. the entrepreneur can
always go back to the business plan to compare actual performance against the set
6. Apply for financing from lending institutions. A well-prepared business plan can be the back-up support
to convince possible sources of capital, especially banks, that something good will come out of the business
idea.

A business plan is very important to various parties. Among those who need business plans are the management
team, shareholders, bankers or creditors, customers. suppliers, and employees. To gain their confidence,
stakeholders will have to be informed about what are the purposes, reactions, core business, and financial situation
of the business venture from time it will start and in the next few years based on its forecast. There a good business
plan is made up of the following essential elements as below:
1. Executive Summary
• Description of the proposed business and business model
• Description of the market opportunity to capture, or market problem the business solves
• Reasons for why this is an attractive business opportunity
• Key distinctions or differentiators of the business versus competitors
• Overview of the sales, marketing, and operations strategy and plan
• Description of the execution plan and timeline
• Overview of projected financials containing revenues, costs, profits and assumptions
2. Management and Organization
• Company Name, Logo, and Address
• Vision and Mission Statements
• Key Personnel
• Workforce and Support personnel
• Organizational Chart
• Ownership, Capitalization, Compensation and Incentives
• External Management Support
3. Product/Service Plan
• Purpose of the product/service
• Product’s Unique features
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 • Materials Requirements and sources of supply
• Process an equipment that will be used to manufacture the product/render the service
• Production/Service Process and Controls
• Distribution logistics
• Regulatory and other compliance issues
4. Market Plan
• Market Analysis which includes demand and supply vis-à-vis competitors
• Marketing and Sales strategies
• Product/Service Characteristic or features
• Pricing Policy
• Sales Projections
5. Financial Plan
• Start-up Costs requirements
• Financial Projections
• Breakeven Analysis
• Budget
LESSON 5- OPERATION AND HUMAN RESOURCE MANAGEMENT
Lesson Duration: 4 HOURS

Lesson Description
Production is an activity that converts materials into useful forms. The materials may be raw materials, semi
processed or semi furnished goods, or even finished products. Machinery, equipment, methods, and processes are
basic elements of production.
Learning Objectives:
At the end of the lesson, the students should be able to:
• Discuss the 4Ms of production management;
• Explain the production/operations management practices that can be adopted;
• Describe the meaning of human resource management; and
• Discuss the human resource management practices that can be adopted.

Module 6: Production/Operation Management ________

In this module, you will encounter the following:
Day 21-online class
Pre-Test: Pre-Assessment 6
Discussion: Production/Operations Management
Day 22 - asynchronous
Activity:
Day 23 - online class
Discussion: Production/Operations Management
Day 24 – asynchronous
QUIZ DAY
PRODUCTION- is a process of combining various material inputs and immaterial inputs in order to make something
for consumption. It is the act of creating an output, a good or service which has value and contributes to the utility
of individuals.
PRODUCTION MANAGEMENT- is the application of management principles to the production function in a
factory. It involves application of planning, organizing, directing and controlling the production process.
These 4Ms of production were given more in-depth discussions by Robert and Chad Counts (n.d.) as follows:
1. METHOD. Using the Inventory Management System to establish what is needed and at what inventory
stock levels. Based on what is known, the Manager can determine the volume of products that need to be
processed and who will be responsible for each step of the process.
2. MANPOWER. When examining the Methods you now have in place, what is the ideal number of people it
will take to perform these methods and what positions should they be in.
3. MACHINE. When examining your facilities, vehicles and tools, do you have everything you need to
ensure the safety of the employees while maximizing the efficiency and productivity of the company? Do

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 all workers have access to the same tools and equipment if needed? Do the tools enable them to perform
tasks independently? Are they trained on how to maintain the machinery and tools?
4. MATERIALS. Do you have the materials needed to perform all parts of production and are. they
conveniently located to minimize waste? Example: All material needed to clean

QUALITY ASSURANCE- is a way of preventing mistakes and defects in manufactured products and avoiding
problems when delivering products or services to customers.

OPERATION MANAGEMENT- is an area of management concerned with designing and controlling the process
of production and redesigning business operations in the production of goods or services.

Production/Operations Management Practices

1. Plan and control production. It deals with decisions that will enable the entrepreneur offer services: (1)
according to specifications or needs; (2) in the quantity demanded; (3) by the schedule and (4)) at,
minimum cost. When the entrepreneur plans ahead, one can anticipate problems, and work out solutions to
prevent front occurring.
2. Adopt the standard production models. Whatever the, business needs to produce to be able to sell, it
means it is vital to have a production process in place that will help the entrepreneur make certain that the
company has a quality product/service that is needed and produced the way it was planned.
3. Design plant layout for better efficiency. Layout pertains to "the way machines. workplaces, and storage
areas are located in relation to one another. This means arranging and putting together the right space,
appropriate furniture, and proper equipment in such a way as to minimize the movement and handling of
materials to accomplish the tasks called for by the business
4. Choose the right machines and equipment. The choice of machine and equipment affects the overall
profitability of your business. Moreover, the money to buy machines and equipment is a form of
investment.
5. Operating characteristics. The most important thing to consider in selecting your supplier or brand for a
particular production machine is the operating characteristics of the machine you need.
• Plan and Control production
• Adopt the standard production models
• Design plant layout for better efficiency
• Choose the right machines and equipment
• Purchase based on needs and on time
• Maintain machine and equipment properly
• Manage Inventory/Stock well
• Ensure Quality Control
6. Engineering features. Closely related to the machine's operating characteristics are its engineering
features. These features must be compatible with your other equipment, process and plant layout.
7. Cost. After you've found several machines that fit your requirements, analyze and compare the cost of each
machine in relation to its capacity, efficiency in its use of fuel, and other technical considerations.
8. Qualitative factors. Consider all possible suppliers before making a final decision. Who among them is
willing to provide installation assistance, warranty and/or maintenance service? You don't necessarily have
to acquire brand new equipment. You can buy a second-hand machine, lease equipment, or even fabricate
your own machine.
9. Purchase based on needs and on time. It is imperative to procure the materials, components, machinery,
equipment, supplies and necessary services needed in the production process on time. This can reduce costs
and ensure the quality of needed materials.
10. Maintain machines and equipment properly. It is important to keep ma. chines and equipment in good
running condition. Their proper care and maintenance ensures that there is no disruption of production due
to machine breakdown. Machine breakdowns cause delays, as well as financial costs for repair.
• Manage inventory/stock well. Stock/inventory pertains to "all the goods a business has for sale, and all
raw materials or parts a business keeps to ensure continuous operations."
• Ensure quality control. Defective products can be a result of lack of control. Some guideline to observe
to ensure quality control in production: (1) check the quality of your raw materials; (2) calibrate measuring
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 and testing equipment regularly; (3) maintain machines properly and make sure they are in good
condition; (4) conduct adequate tests to verify whether the product meets quality standards or not; and (5)
inspect for quality.
Module 7: Human Resource Management ________
In this module, you will encounter the following:
Day 25-online class
Pre-Test: Pre-Assessment 7
Discussion: HUMAN RESOURCE MANAGEMENT
Day 26 - asynchronous
Activity:
Day 27 - online class
Discussion: HUMAN RESOURCE MANAGEMENT
Day 28 – asynchronous
QUIZ DAY

HUMAN RESOURCE- is the set of the people who make up the workforce of an organization, business sector,
industry, or economy. A narrower concept is human capital, the knowledge which the individuals embody. Similar
terms include manpower, labor, personnel, associates or simply people.

HUMAN RESOURCE MANAGEMENT- is the strategic approach to the effective management of people in a
company or organization such that they help their business gain a competitive advantage. It is designed to maximize
employee performance in service of an employer's strategic objectives.

HUMAN RESOURCE MANAGEMENT PRACTICES

1. Design an effective recruitment strategy. Recruitment is "any practice or active carried on by the
organization with the primary purpose of identifying and potential employees." However, because of
differences in companies'
2. Adopt a good selection process. Selection is the "process by which the organization attempts to identify
applicants with the necessary knowledge, skills, abilities. and other characteristics that will help the
organization achieve its goals".
3. Develop effective training programs. Training is a set of activities aimed to facilitate learning of
knowledge. attitude. and skills among people in the organization, to, in turn improve their current job
performance and contribution to the achievement of organizational goals.
4. Conduct performance management. Performance management is the "process through which managers
ensure that employees' activities and outputs contribute to the organization's goal (Noe, et al., 2004).
5. Implement an attractive compensation scheme. Compensation refers to all of financial returns and
tangible services and benefits that employees receive as part of an employment relationships.
6. Design work-family balance programs. Work-family balance may be fined as the degree to which an
individual is able to simultaneously balance the temporal, emotional, and behavioral demands of both paid
work and family responsibilities (Hill, Hawkins, Ferris, and Weitzman, 2001).
7. Observe fair employee relations practices. Employee relations or labor relations. pertains to a set of
processes and procedures utilized in the interaction between employees and employer to attain their
respective goals, while accommodating the needs of both parties.
8. Determine the entrepreneur's role in the business. Many small businesses begin with the founder-owner
doing all the management functions of marketing, production, human resource. and finance without the
help of specialized staff.
• Education and Training
• Experience
• Interest and Talent
• Time
• The Pros and Cons of Having a Bird’s Eye View.
9. Get the right people. In starting a business, the entrepreneur may begin with family members, relatives,
friends, neighbors, or acquaintances as the workforce. but be clear about requiring them to be professional
in the work, especially when dealing with you.

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 10. Prepare an employee manual. It is always advisable to prepare an employee manual. This should contain
information pertaining to company and procedures on working conditions, compensation, other benefits,
discipline and grievance processing, among others.
11. Invest in human capital. Human capital is the quality and quantity skills, education, and talents a person
has. When people attend classes, apprentices, obtain graduate degrees, and receive on-the-job training, they
are investing in or improving their human capital.
12. Motivate people in the workplace. Motivation is a function of willingness and ability (skills) to do the
job, as well as help employees work at high energy levels. Open communication, respect, fair
compensation, training, work-life balance, and empowerment activities and programs will definitely
motivate people in the workplace.
13. Maintain employees' commitment and loyalty. One way of doing this is to ensure that the work
environment is safe, healthy, caring for employees, aryl at least complaint with government rules and
regulations, as well as company social responsibility.
14. Effectively communicate policies and practices with employees. Communication is very important so
that employees feel they are really part of the organization and, thus, work more and better.

Strength, Weakness, Opportunities & Threats (SWOT) Analysis- is a strategic planning technique used to help
a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition
or project planning.

LESSON 6- FINANCIAL ACCOUNTING AND MANAGEMENT

Lesson Duration: 4 HOURS

Lesson Description
The resources you need, in order to run your business and produce the goods or services, are people, methods,
materials and machines. To have all these, you need money.
Learning Objectives:

At the end of the lesson, the students should be able to:

• Discuss how to keep business records and the tasks corresponding to it;
• Determine how to interpret financial statements
• Describe how to prepare a business report; and
• Discuss the financial management practices that can be adopted
Module 8: Bookeeping ________
In this module, you will encounter the following:
Day 25-online class
Pre-Test: Pre-Assessment 8
Discussion: Bookkeeping
Day 26 - asynchronous
Activity:
Day 27 - online class
Discussion: Bookkeeping
Day 28 – asynchronous
QUIZ DAY
BOOKKEEPING- is the recording of financial transactions, and is part of the process of accounting in business.
Transactions include purchases, sales, receipts, and payments by an individual person or an
organization/corporation.
Keeping good records is very important to your business. Good records will help you do the following:
1. Monitor the progress of your business
2. Prepare your financial statements
3. Identify sources of your income
4. Keep track of your deductible expenses
5. Keep track of your basis in property
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 6. Prepare your tax returns
7. Support items reported on your tax returns

The following are some of the types of records that should be kept:

1. Gross receipts are the income you receive from your business. You should keep supporting documents that
show the amounts and sources of your gross receipts. Documents for gross receipts include the following:
• Cash register tapes
• Deposit information (cash and credit sales)
• Receipt books
• Invoices
2. Purchases are the items you buy and resell to customers. If you are a manufacturer or producer, this includes
the cost of all raw materials or parts purchased for manufacture into finished products. Your supporting
documents should show the amount paid and that the amount was for purchases. Documents for purchases
include the following:
• Cancelled checks or other documents that identify payee, amount, and proof of payment/electronic funds
transferred
• Cash register tape receipts
• Credit card receipts and statements
• Invoices
3. Expenses are the costs you incur (other than purchases) to carry on your business. Your supporting documents
should show the amount paid and a description that shows the amount was for a business expense. Documents for
expenses include the following:
• Cancelled checks or other documents that identify payee, amount, and proof of payment/electronic funds
transferred
• Cash register tapes
• Account statements
• Credit card receipts and statements
• Invoices
• Petty cash slips for small cash payments
4. Travel, Transportation, Entertainment, and Gift Expenses. If you deduct travel, entertainment, gift or
transportation expenses, you must be able to prove (substantiate) certain elements of expenses. For additional
information, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses.
5. Assets are the property, such as machinery and furniture, that you own and use in your business. You must keep
records to verify certain information about your business assets. You need records to compute the annual
depreciation and the gain or loss when you sell the assets. Documents for assets should show the following
information:
• When and how you acquired the assets
• Purchase price
• Cost of any improvements
• Deductions taken for depreciation
• Deductions taken for casualty losses, such as losses resulting from fires or storms
• How you used the asset
• When and how you disposed of the asset
• Selling price
• Expenses of sale
The following documents may show this information:
• Purchase and sales invoices
• Real estate closing statements
• Cancelled checks or other documents that identify payee, amount, and proof of payment/electronic funds
transferred
6. Employment taxes. There are specific employment tax records you must keep. Keep all records of employment
for at least four years:

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 THE FUNCTION OF BOOKKEEPING
Bookkeeping is the process of recording daily transactions in a consistent way and is a key component to building
a strong business foundation.
The task or the functions of the bookkeeper consist of the following:
o Recording financial transactions
o Posting Debits and credits
o Producing Invoices
o Maintaining and balancing subsidiaries, general ledgers, and historical accounts
o Completing payroll
Double Entry Accounting. Is a recordkeeping system under which every transaction is recorded in at least two
accounts.

Module 9: Interpreting Financial Statements ________

In this module, you will encounter the following:
Day 29-online class
Pre-Test: Pre-Assessment 9
Discussion: Interpreting Financial Statements
Day 30 - asynchronous
Activity:
Day 31 - online class
Discussion: Interpreting Financial Statements
Day 32– asynchronous
QUIZ DAY

BALANCE SHEET is a summary of the financial balances of an individual or organization, whether it be a sole
proprietorship, a business partnership, a corporation, private limited company or other organization such as
government or not-for-profit entity.
FINANCIAL STATEMENTS. are formal records of the financial activities and position of a business, person, or
other entity. Relevant financial information is presented in a structured manner and in a form which is easy to
understand.

Types of Financial Statements

1. Statement of Financial Position or Balance Sheet- Shows the financial condition/position of a business as
of a given period. It consists of the Assets, Liabilities, and Capital.
2. Statement of Comprehensive Income or Income Statement
The Income statement shows the result of operations for a given period. It consists of the Revenue, Cost, And
Expenses.
The Statement of Comprehensive Income consists of the revenue, Cost, Expenses and contains components of the
other comprehensive income(including reclassification adjustments) as follows: changes in revaluation surplus,
gains and losses on benefit plans, gains and losses from investments in equity instruments, finance costs, share of
associates and joint ventures under the equity method, tax expense, gains and losses from foreign operations, and
all other operating and financial events affecting the owner’s equity in the business.
3. Statement of Changes in Owner’s Equity or Statement of Owner’s equity- Shows the changes in the Capital
or Owner’s equity as a result of additional investment or withdrawals by the owner, plus or minus the net income
or net loss for the year.
4. Statement of Cash Flows- Summarizes the cash receipts and cash disbursements for the accounting period. It
summarizes the cash activities of the business by classifying cash inflows(receipts) and cash outflows (payments)
into operating, investing , and financing activities. It shows the net increase or decrease of cash in a given period
and the cash balance at the end of the period. This allows management to assess the business’ ability to generate
cash and project future cash flows.
Cash flow in the statement are divided into the following three areas:
1. Operating Activities. These constitute the revenue-generating activities of a business. Examples of
operating activities are cash received and disbursed for product sales, royalties, commissions, fines,
lawsuits, supplier and lender invoices, and payroll.

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 2. Investing Activities. These constitute payments made to acquire longterm assets, as well as cash received
from their sale. Examples of investing activities are the purchase of fixed assets and the purchase or sale of
securities issued by other entities.
3. Financing Activities. These constitute activities that will alter the equity or borrowings of a business.
Examples are the sale of company shares, the repurchase of shares, and dividend payments.

Module 10: Preparing a Business Report ________

In this module, you will encounter the following:
Day 29-online class
Pre-Test: Pre-Assessment 10
Discussion: Preparing a Business Report
Day 30 - asynchronous
Activity:
Day 31 - online class
Discussion: Preparing a Business Report
Day 32– asynchronous
QUIZ DAY

BUSINESS REPORT- is an evaluation of a particular issue, set of circumstances, or financial operations that relate
to the performance of a business. It is often written in response to an executive of the company, and often takes the
form of a memo with the report attached.

PREPARING A BUSINESS REPORT

Business reporting on a regular basis such as monthly, quarterly, semi-annually, or yearly is a must for those
who owns/manages the business.
Following steps to be considered in generating business reports:
➢ Determine the scope of the report
➢ Consider the target audience
➢ Gather and organize the supporting information
➢ Analyze and weigh the supporting information
➢ Determine the solution, findings and/or recommendations; and
➢ Determine report format
The business report format can be as follows but can be adjusted depending on the purpose of the report;
➢ Executive summary
➢ Purpose and Rationale
➢ Context which include the mission-vision statement, strategies, organizational structure and staffing
➢ Actual performance versus plans/targets with the corresponding remarks of why it happened that way
➢ Facilitating and hindering factors in the achievement of plans
➢ Issues and concerns that were addressed
➢ Financial Statements with its corresponding summaries and interpretation
➢ Conclusion and recommendation

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Module 11: Sound Financial Management Practices ________
In this module, you will encounter the following:
Day 33-online class
Pre-Test: Pre-Assessment 11
Discussion: Preparing a Business Report
Day 34 - asynchronous
Activity:
Day 35 - online class
Discussion: Preparing a Business Report
Day 36– asynchronous
QUIZ DAY

FINANCIAL MANAGEMENT- is a vital activity in any organization. It is the process of planning, organizing,
controlling and monitoring financial resources with a view to achieve organizational goals and objectives.

SOUNDS FINANCIAL MANAGEMENT PRACTICES

The resources you need, in order to run your business and produce the goods or services, are men,
materials and machines.
1. Adopt effective financial planning. Financial planning is perhaps the most difficult task of the owner-
manager. Planning is important because the funds of the enterprise are limited and must be sourced and
used properly for the good of the business.
2. Observe sound financing. Sometimes, an entrepreneur does not have enough money to start or operate the
business. When this happens, the owner may decide to borrow money. In borrowing, one must be careful
not to borrow too much. Ideally, the entrepreneur should only borrow, 40% of the money that is needed to
operate the business, while the remaining 60% must come from ones own pocket. Businesses that are
funded by 40% debt is burdened with having to pay very high interests.
3. Record and monitor cash flow. Cash flow is the actual movement of cash within a business. The
entrepreneur needs to record the “sources-and-uses-of-funds” in order to know how much cash is needed,
and when that money is required by a business within a period of time.
4. Know the business cost. Costing is calculating the total money spent in making and selling the product, or
completing a service to be offered, in the market. Some examples of costs are raw materials bought to make
products or complete services; salaries and wages of factory workers or service crew; and electricity for the
machines, light, and office equipment. Costing helps the entrepreneur set prices, make better decisions
about the business, and plan for the future operation of the company.
5. Reduce Cost. It will make the business more profitable when the costs are minimized. Some ways to
reduce costs can be by recycling (e.g. papers, containers); using energy-saving device or materials (e.g.
energy-saving lamps, rice hulls, electric fans); buying second-hand equipment or renting instead of buying;
and asking family members, like children and spouse, to help in the business.
6. Record all business transactions. Anything that are owned by the owner and used for business, proceeds
(or sales) from selling the products or services, and at the same time the expenses incurred in operating the
business, should be written down. This will give the entrepreneur a fairly accurate picture of how the
business is doing. Handle well the bookkeeping and accounting systems, record-keeping, tax payments,
collecting of money, insurance, budgeting, and managing of risks. This will keep the business financially
stable and enable it to stay in operation for a long time. There is nothing like knowing how to keep track of
your business, how it is doing, and if it is going as planned.
7. Prepare income statements. The income statements will show whether the business made a profit or
suffered a loss for a given period. Generally, the entrepreneur should know if revenues are greater than
expenses for a given month, quarter, or year.
8. Seek the services of a good accountant. If the entrepreneur is not an accounting graduate or does not
have any background in accounting, it is best to avail of the services of a good accountant to set up the
firm’s books of accounts and to initiate him/her into the recording process. Once the entrepreneur gets
used to it, recording will almost be mechanical and routine. Doing it regularly will be very helpful in many

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 instances, like payment of taxes, meeting cash requirements, payment of debts in time, and business
expansion in the future.
9. Manage enterprise funds properly. Managing funds is not simply maintaining sufficient cash for the
business operations, but entails a more comprehensive approach than just having ready cash. Part of this is
knowing the possible sources of funds, like friends, family members, banks, and other lending institutions. It
is also important to budget the cash properly and that there is an internal control, so that cash is available
whenever it is needed. The DTI-BSMED has also enumerated the following cash management strategies that
you could be applied to better guarantee that the entrepreneur will have cash whenever he/she needs it:
• Barter. If paying cash can be avoided, consider barter. In common Filipino business language, this is often
called “ex deal” or exchange deal or “trade-in.” This is a usual practice in trading, which sometimes involves
exchange of goods, even between competitors. Mobile phone retailers and tire supply merchants exchange
items in their stocks with those not found in their inventory, but are nonetheless available from their
neighboring competitors, either with little or no cash involved.
• Once-a-week disbursement. As much as possible, allow disbursements only once a week for easier monitoring
of the inflow and outflow.
• Disallowance of prepayment. Simply put, do not make payments even before the obligations become due. It is
a different picture, though, if paying beforehand will save the entrepreneur more money.
• Taking advantage of non-interest bearing payables. Postpone payment by all means. You can use the money
for income-generating activities like adding to the business working capital.
• Some tricks with regard to issuing a check. If the entrepreneur’s creditor will allow it, issue a post-dated
check to pay one’s debt. In banking, there is such a practice called “playing the float” or funding the checking
account only at the moment of check encashment between or among different banks. Take advantage of the
period between the time a check is issued and the moment the creditor will cash it. The entrepreneur can also
mail the check to buy even more time. Be wary, though, of the law penalizing issuance of bouncing checks.
Just be sure that the company has sufficient funds in the bank at the moment of encashment.
• Concentration banking. If the entrepreneur maintains different accounts at different banks, it i s suggested that
he/she also maintain a “ main” bank account, where all deposits are transferred to facilitate bank
reconciliation.
• “Lock box system”. Sometimes, the distance of the entrepreneur’s debtors prevents them from paying. A good
way to resolve this is to rent a post office box (P.O. Box). Cluster your debtors into one area and select a
central post office closest to them. Rent a P.O. Box maintained by that post office and notifies the debtors that
they can also send their payments to that P.O. Box. An alternative to this is opening an account at a bank
branch nearest to the debtors.The payments made by these customers to that account will be remitted by the
bank to the branch where you maintain your account.
• Requirement of down payment. Finally, require your customer to make a down payment if paying in full is
not possible.

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